In the quest of additional revenue, businesses often chase after new customers and forget all about the existing ones and their untapped potential. However, if businesses strategize in the right way, doubling income by closing additional sales with customers who are already loyal to the business can be an easy and repeatable task.
This article will examine at some strategies that are very simple, yet, highly effective. They will help a business –
- Considerably increase revenue from your existing customer base
- Deliver better value to your devout customers
- Reconnect with your customers and increase their brand loyalty and level of engagement
1. Let the Customers Pick
Launching a new offering is always a gamble—unless one can somehow ask customers directly. Online survey and market research are the two tools that can help businesses understand what its customers want. The companies can either run these campaigns online or over the phone. All they need to do is to ask customers about the new products that they want from the company.
Asking the customers is a win-win situation for both the company and the customers. Businesses enjoy a boost in revenue while the customers become happy about the new product.
The pizza cake by Boston Pizza is one classy example of this.
2. Get Savvy With Up-Selling and Cross-Selling
Up-selling and cross-selling are the two easiest ways to generate additional revenue without acquiring more clients.
Businesses also to keep in mind is that the up-selling products have to be relevant. The price of the products should not go beyond 60% of the price of the original product. If a product offered in this process can turn a one-time customer grow into a long term customer, it’s even better.
Every business model in existence can do it and rip the benefit.
For example, several website hosting companies generate additional revenue by offering domain registration, paid cloud storage, identity protection, as well as other services their customers might require.
Here are some examples of successful up-sells and cross-sells that people see every day:
- McDonald’s always pitches for a drink or fries with each purchase.
- IKEA has delivery and furniture assembly as additional services.
- Gyms offer annual or even lifelong memberships.
- Online marketers offer enhanced, premium versions of their content and sell them to their niche audience.
- Bloggers earn more offering blog writing courses and video tutorials
However, if businesses are unsure how they can include up-sell in their strategy can consult with a third party up-sell expert to find out innovative ways to improve their revenues through up-sell.
3. Maximize Value for Customers
Smart companies know that a customer’s lifetime value increases with each new purchase. Keeping customers for a lifetime drives the profits.
One of the most efficient ways to ensure that the customers coming back is to offer them high value at little to no cost. The more a business invests in their long-term success, the more loyal the customers will become. Rewarding a long-term relation with the clients can be encouraging and at the same time these free services make the customers feel ecstatic.
4. Keep the Customers Informed
In most cases, customers who buy a specific product from a company do not know about its other offerings. So, passing on information about what other products and services the business offers might be a useful step towards drawing their attention towards these products. More often than not, a customer who buys a product from a company goes to another company for a related product. The reason behind this is he/she is unaware that the first company also sells the product.
Businesses have to make customers inclined to try new things. Even if they don’t take upon the offerings immediately, they will be more likely to opt for them in the future.
5. All It Takes Is a Well-Timed Pitch during the Peak Season
In most cases, there is a specific time of the year when the profit potential of a business is at its highest. For example – restaurants, airlines have a booming time during the holiday season. Beach resorts, scuba gear and swimwear sellers have a profitable time in the summer. Children’s wears and school supply sale soars right before the beginning of the school year.
If sales agents can make a well-timed pitch during these seasons, businesses can easily double their earning. All they have to do is to find out seasons and dates that influence customers’ buying decisions.
The cost of acquiring a new customer is higher than repeat business. Moreover, businesses can always rely on repeat business for predictable and lasting revenue. They need to keep in mind that, they should not push the customer into buying something. It is all about encouraging customers to buy more in a way that the customers will love the experience.